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The Effect Of Education On Cognitive Ability

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  • TORBERG FALCH
  • SOFIA SANDGREN MASSIH

Abstract

We analyze whether the amount of schooling influences intelligence as measured by IQ tests. By use of a novel longitudinal dataset we are able to condition on early cognitive ability to account for selection into non-compulsory schooling when estimating the effect on cognitive ability at age 20. OLS estimates indicate that one year of schooling increases IQ by 2.8-3.5 points (about 0.2 standard deviations). When family income per family member and teacher evaluations of the individuals at age 10 are used as instruments for schooling and early cognitive ability, the return to schooling is estimated to 3.5-3.8 IQ points.
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Suggested Citation

  • Torberg Falch & Sofia Sandgren Massih, 2011. "The Effect Of Education On Cognitive Ability," Economic Inquiry, Western Economic Association International, vol. 49(3), pages 838-856, July.
    • Handle: RePEc:bla:ecinqu:v:49:y:2011:i:3:p:838-856
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    Cited by:

    1. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany – Heterogeneous Eff ects and Skill Formation," Ruhr Economic Papers 0446, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    2. Burhan, Nik Ahmad Sufian & Md. Yunus, Melor & Tovar, María Elena Labastida & Burhan, Nik Mohd Ghazi, 2016. "Why are cognitive abilities of children so different across countries? The link between major socioeconomic factors and PISA test scores," MPRA Paper 77239, University Library of Munich, Germany.
    3. Chen, Yi & Jiang, Sheng & Zhou, Li-An, 2020. "Estimating returns to education in urban China: Evidence from a natural experiment in schooling reform," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 218-233.
    4. Govert E. Bijwaard & Andrew M. Jones, 2019. "An IPW estimator for mediation effects in hazard models: with an application to schooling, cognitive ability and mortality," Empirical Economics, Springer, vol. 57(1), pages 129-175, July.
    5. Nicole Schneeweis & Vegard Skirbekk & Rudolf Winter-Ebmer, 2012. "Does schooling improve cognitive functioning at older ages?," NRN working papers 2012-11, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
    6. Fei Hou & Fangnan Liao & Jie Liu & Hao Xiong, 2019. "Signing Auditors’ Foreign Experience and Debt Financing Costs: Evidence for Sustainability of Chinese Listed Companies," Sustainability, MDPI, vol. 11(23), pages 1-19, November.
    7. Daniel A. Kamhöfer & Hendrik Schmitz, 2013. "Analyzing Zero Returns to Education in Germany: Heterogeneous Effects and Skill Formation," SOEPpapers on Multidisciplinary Panel Data Research 598, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Vincent Y. S. Oh & Zhaoliang Yu & Eddie M. W. Tong, 2022. "Objective Income But Not Subjective Social Status Predicts Short-Term and Long-Term Cognitive Outcomes: Findings Across Two Large Datasets," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 162(1), pages 327-349, July.
    9. Yuhong Xu & Shih-Fen Cheng & Xinyu Chen, 2023. "Improving Quantal Cognitive Hierarchy Model Through Iterative Population Learning," Papers 2302.06033, arXiv.org, revised Feb 2023.
    10. Anger, Silke & Heineck, Guido, 2010. "Do Smart Parents Raise Smart Children? The Intergenerational Transmission of Cognitive Abilities," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 23, pages 1105-1132.
    11. Bingley, Paul & Martinello, Alessandro, 2017. "The Effects of Schooling on Wealth Accumulation Approaching Retirement," Working Papers 2017:9, Lund University, Department of Economics.
    12. Dahmann, Sarah C., 2017. "How does education improve cognitive skills? Instructional time versus timing of instruction," Labour Economics, Elsevier, vol. 47(C), pages 35-47.
    13. Bingley, Paul & Martinello, Alessandro, 2013. "Mental retirement and schooling," European Economic Review, Elsevier, vol. 63(C), pages 292-298.
    14. Nikolaev, Boris & McGee, Jennifer, 2016. "Relative Verbal Intelligence and Happiness," MPRA Paper 78564, University Library of Munich, Germany.
    15. Jay Squalli, 2022. "Intelligence, Religiosity, and Environmental Emissions," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(3), pages 418-449, June.
    16. Hegelund, Emilie Rune & Grønkjær, Marie & Osler, Merete & Dammeyer, Jesper & Flensborg-Madsen, Trine & Mortensen, Erik Lykke, 2020. "The influence of educational attainment on intelligence," Intelligence, Elsevier, vol. 78(C).
    17. repec:zbw:rwirep:0446 is not listed on IDEAS
    18. Nicole Schneeweis & Vegard Skirbekk & Rudolf Winter-Ebmer, 2014. "Does Education Improve Cognitive Performance Four Decades After School Completion?," Demography, Springer;Population Association of America (PAA), vol. 51(2), pages 619-643, April.
    19. Dawoon Jung & Tushar Bharati & Seungwoo Chin, 2021. "Does Education Affect Time Preference? Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 69(4), pages 1451-1499.
    20. Kunt Šimunović, Pınar, 2024. "Education increases patience: Evidence from a change in a compulsory schooling law," Economics & Human Biology, Elsevier, vol. 53(C).
    21. Daniele, Vittorio, 2013. "Does the intelligence of populations determine the wealth of nations?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 46(C), pages 27-37.
    22. Oli Ahad Thakur & Bany‐Ariffin Amin Noordin & Bolaji Tunde Matemilola & Md. Kausar Alam & Doddy Setiawan, 2022. "Impact of goodwill on capital structure and the moderating role of investors' education," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2657-2677, October.
    23. Bijwaard, Govert E., 2022. "Educational differences in mortality and hospitalisation for cardiovascular diseases," Journal of Health Economics, Elsevier, vol. 81(C).
    24. Mohammad Niaz Asadullah, Nazmul Chaudhury, 2013. "Primary Schooling, Student Learning, and School Quality in Rural Bangladesh-Working Paper 349," Working Papers 349, Center for Global Development.

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    More about this item

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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